Thoughts on Delaying Claiming Civil Service Classic Pension

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81963609#Comment_81963609

And a reduction, which isn't a "penalty", if you do take it before the normal pension age.

hugheskevi

https://forums.moneysavingexpert.com/discussion/comment/81963609#Comment_81963609

Alpha is actuarially enhanced if you commence it after Normal Pension age. This is also set to be actuarially fair, as with actuarial reductions.

People have an irrational attachment to Normal Pension age with alpha, perhaps stemming from the Normal Pension age 60 schemes (classic, classic plus, premium) where not taking benefits at Normal Pension age could be very detrimental. Or maybe as benefits as at Normal Pension age are shown on Annual Benefit Statements, loss aversion kicks in when considering taking benefits before that age.

george_jetson

Taking Alpha at 60 means you get 0.7 of the amount that would be paid at 67 I think.

I worked out that the "breakeven" point for me (taking the Alpha portion of my pension at 67 vs 60) was in my early 80s - it would take that long for the 67 option to be financially optimal.

There are lots of factors to consider but on the whole I think I would prefer to take Alpha early - I'm sure I'll be able to put the money to better use in my early 60s than 80s (when of course I'll also receive a state pension)

brizzie_2

I have had extensive correspondence with CSP (pre-Capita) around when I reached 60 - I didn't want abatement to reduce the pension to nothing.

I have a classic pension which became preserved when I left service in 1995. This was payable at age 60. I have it in writing that when I choose to take it (in 2028) the arrears will be paid in full plus the lump sum. I have not lost it as a result of being employed. It's now deemed deferred.

I became a civil servant again in 2019 so I also have a separate Alpha pension payable in 2029, that I don't intend to take until 2029, a year after my second service ends. CSP were aware of this when telling me about my deferred Classic pension.

So I'm a bit concerned about suggestions that I 'm not going to get my arrears. Plus right now Capita aren't exactly trustworthy.

JamesCoster

Where have you seen suggestions that you won't get the arrears?

(In the same situation as you - left the service and employed elsewhere, so CS pension is currently deferred)

horsewithnoname

https://forums.moneysavingexpert.com/discussion/comment/82029207#Comment_82029207

if you have left the civil service then you do get your arrears if you don’t claim it at 60. If you are still employed within the civil service pension scheme then you don’t get the arrears because you are being paid and classic pension is deferred salary so you can’t have it twice. No abatement with alpha as it’s a different scheme.

JamesCoster

I see Richard Vianello the new Director of Civil Service Pensions failed to update yesterday as promised.

`Members deserve financial security and dignity in retirement, not empty promises or severe administrative failures. I will follow up on Capita’s progress in my next update on Thursday 23 July'

Not a good start!

KatieMorag

I saw the update on our Departmental Intranet yesterday (23 July) but looks like it may only have been published on the pensions site today

https://www.civilservicepensionscheme.org.uk/memberhub/knowledge-centre/events-and-news/recovery-plan-updates/